The price of oil moved over the $90 per barrel marker on Thursday as crude supplies tighten and as Saudi Arabia and Russia cut production.
Crude is now at the highest level in 10-months.
The climb has added to inflationary pressure.
On Wednesday, the consumer price index rose 3.7% annually in August, more than expected. The jump was fueled by a surge in gas prices, which accounted for more than half of the increase last month, the Labor Department said in the report. In total, energy prices climbed 5.6% in August from the previous month, including a 10.6% jump in gas prices.
The producer price index, reported Thursday, which measures inflation at the wholesale level before it reaches consumers, climbed 0.7% in August from the previous month. On an annual basis, prices are up 1.6%
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Meanwhile, the Russian and Saudi output reductions will result in a market deficit through the fourth quarter, the International Energy Agency said on Wednesday before a bearish U.S. inventories report prompted a slight pullback in prices.
West Texas Intermediate is up over 13.5% the last five days and now more than 31% the last quarter, while Brent Crude, the global benchmark, is now roughly 3.8% higher the last five days and almost 24% higher the last three months.
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Priyanka Sachdeva, senior market analyst at Phillip Nova, said supply fears are underpinning oil prices as producers "adamantly stick to restricted production".
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The Organization of the Petroleum Exporting Countries (OPEC) recently issued updated forecasts of solid demand and also pointed to a 2023 supply deficit if production cuts are maintained.
Meanwhile, oil producers like Chevron, Hess, Exxon Mobile and Occidental Petroleum historically have benefited from higher oil prices.
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FOX Business' Megan Henney and Reuters contributed to this report
